According to a recent study, advertising on social media platforms overtakes print media for the first time in global ad spending. According to the forecast by Zenithmedia, this year the advertising spent on social media will overtake print media for the first time in the world. According to the Advertising Expenditure Forecast estimate by the media agency, the spending on social media advertising is expected to jump 20% to $84 billion this year whereas newspaper and magazine spending will see a fall in its advertising of 6% to $69 billion.
The expand in the growth on social media advertisements will make the share of social media’s global ad spend to 13% making it the third-biggest ad channel behind the TV (29%) and paid search (17%) this year. There is also expected growth in paid search by 8% from $107 billion in 2019 to $132 billion by 2021 when it will make 18% of total ad spending. The advertising on TV is expected to decline this year due to a decrease in ratings in key markets and it is expected to fall to $180 billion by 2021 from $182 billion this year. According to Zenith, they also saw a downgrade in its estimate of global media spending growth to 4.4% from an earlier forecast of 4.6% to a total of $640 billion. According to a forecast by Zenith, annual spending growth is expected to remain steady at 4.3% to 4.4% through 2021.
As compared to traditional mediums of advertisements, social media platforms tend to have more advantages due to their data about users for ad targeting. The majority of the social media platforms have provided local businesses some advanced tools to create geotargeted or hyperlocalized campaigns specifically aimed at their required potential customers.
For digital companies like Facebook and Google, the increase in the market of social and search spending is a major advantage. According to the report by Google’s parent company Alphabet, the firm saw an increase of 16% in its ad sales in Q2 from a year earlier and it is a pretty huge increase when you look at it with a perspective of the digital ad market.
The growth rate of social media companies also depend on the companies, the platforms engaged with younger audience tends to show more increase in ad revenue as compared to others. This year, there’s an increase in the revenue of 62% for Pinterest, a 48% increase for Snap, 28% for Facebook and a 21% increase in Twitter’s revenue gains. Although the most viral social video app TikTok doesn’t disclose its ad sales to companies but this platform is also rising in the market and brands are also advertising on this platform to engage a variety of audiences. After Google and Facebook, Amazon is ranked as the third-biggest digital platform for advertising after 37% increase in its ad sale business in Q2 from a year earlier.
Read next: Statistics Reveal Facebook’s Social Media Monopoly
The expand in the growth on social media advertisements will make the share of social media’s global ad spend to 13% making it the third-biggest ad channel behind the TV (29%) and paid search (17%) this year. There is also expected growth in paid search by 8% from $107 billion in 2019 to $132 billion by 2021 when it will make 18% of total ad spending. The advertising on TV is expected to decline this year due to a decrease in ratings in key markets and it is expected to fall to $180 billion by 2021 from $182 billion this year. According to Zenith, they also saw a downgrade in its estimate of global media spending growth to 4.4% from an earlier forecast of 4.6% to a total of $640 billion. According to a forecast by Zenith, annual spending growth is expected to remain steady at 4.3% to 4.4% through 2021.
Detailed insight on Zenith
The report revealed by Zenith clearly displays that the media landscape is expected to undergo a huge transformation as the paid searches and social media platforms grow more with the passage of time. Social media advertisements are expected to overtake traditional modes of advertisements like TV and print media.As compared to traditional mediums of advertisements, social media platforms tend to have more advantages due to their data about users for ad targeting. The majority of the social media platforms have provided local businesses some advanced tools to create geotargeted or hyperlocalized campaigns specifically aimed at their required potential customers.
For digital companies like Facebook and Google, the increase in the market of social and search spending is a major advantage. According to the report by Google’s parent company Alphabet, the firm saw an increase of 16% in its ad sales in Q2 from a year earlier and it is a pretty huge increase when you look at it with a perspective of the digital ad market.
- Also read: Effects of Mobile Industry on Global Economy
The growth rate of social media companies also depend on the companies, the platforms engaged with younger audience tends to show more increase in ad revenue as compared to others. This year, there’s an increase in the revenue of 62% for Pinterest, a 48% increase for Snap, 28% for Facebook and a 21% increase in Twitter’s revenue gains. Although the most viral social video app TikTok doesn’t disclose its ad sales to companies but this platform is also rising in the market and brands are also advertising on this platform to engage a variety of audiences. After Google and Facebook, Amazon is ranked as the third-biggest digital platform for advertising after 37% increase in its ad sale business in Q2 from a year earlier.
Read next: Statistics Reveal Facebook’s Social Media Monopoly
